Pending sales index rises most in years

A measure of the number of Americans who signed contracts to buy homes rose in January from December to the highest level in more than 2 1/2 years.

The increase suggests sales of previously occupied homes will continue rising in the coming months.

The National Association of Realtors said Wednesday its seasonally adjusted index for pending home sales rose 4.5 percent last month to 105.9. That's the highest since April 2010, when a home buyer's tax credit was about to expire.

The trend has been the same in Southwest Florida.

In the territory covered by the Sarasota Association of Realtors, there were 1,047 pending sales during January, the highest level in nine months and above the 963 registered a year ago.

In Manatee County, there were 546 pending sales. That was more than double the number in January 2011 and up 70 percent from 320 in December.

There is generally a one- to two-month lag between a signed contract and a completed sale.

Pending home sales rose in all regions, but just barely ticked up in the West, where a limited supply of available homes is holding back sales.

The increase is the latest positive report for the housing market, which began recovering last year after a deep, six-year slump. Steady hiring and nearly record-low mortgage rates have encouraged more Americans to buy homes.